#CryptoFees101 – Understanding fees is essential for successful crypto trading. Hidden or high fees can eat into your profits faster than a bad trade. Here's what you need to know:
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💸 1. Trading Fees
What: Charged when you buy or sell crypto on an exchange.
Types:
Maker Fee (you add liquidity by placing a limit order)
Taker Fee (you remove liquidity by using a market order)
Tip: Maker fees are usually lower. Use limit orders when possible.
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🔄 2. Spread
What: The difference between the buy (ask) and sell (bid) price.
Impact: This hidden cost affects your profitability, especially on low-liquidity assets.
Tip: Compare spreads across exchanges before trading.
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📤 3. Withdrawal Fees
What: Charged when you move crypto off an exchange to another wallet.
Fixed or dynamic depending on the coin and network congestion.
Tip: Withdraw in coins with lower fees (e.g., LTC, TRX, XRP) when possible.
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💳 4. Deposit Fees
What: Some platforms charge for fiat or crypto deposits.
Varies by payment method – bank transfers are often cheaper than cards.
Tip: Always check deposit fees before funding your account.
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🔁 5. Network (Gas) Fees
What: Paid to miners or validators to process transactions on-chain.
High on Ethereum (ETH gas fees), lower on Layer-2s or alt chains like Solana, BNB, or Polygon.
Tip: Use L2s or bridges when ETH gas is high.
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📊 6. Slippage
What: The difference between expected price and execution price.
Happens in volatile markets or with large orders.
Tip: Use slippage tolerance settings in DEXs like Uniswap.
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🏦 7. Custodial Wallet Fees
What: Some platforms charge fees for holding crypto in hosted wallets.
Applies to interest-bearing or managed crypto accounts.
Tip: Consider moving your funds to self-custody wallets if safe to do so.
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🔐 8. Staking Fees
What: Platforms may take a cut of your staking rewards.
Usually around 5–20%, depending on the provider.
Tip: Compare staking rewards net of fees or consider staking directly on-chain.
